A vehicle includes a polyphase, permanent magnet synchronous electric machine, DC and AC buses, a battery module, a traction power inverter module (TPIM), and a controller. The controller, which is in communication with the TPIM, executes a method to detect a fault condition, fixes the pulse width modulation (PWM) duty cycles of all phases of the electric machine to 50% such that all phases switch simultaneously, and applies a polyphase OPEN state to the AC bus in response to the detected fault condition. The controller then transitions to a polyphase SHORT state by automatically inserting an adjustable deadtime at each PWM switching transition of the TPIM over a calculated ramp duration, thereby transitioning from an initial deadtime to a minimum deadtime over the calculated ramp duration. The transition reduces peak overshoot of the negative d-axis current of the machine during the fault condition.